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tv   Bloomberg Daybreak Australia  Bloomberg  October 22, 2018 6:00pm-7:00pm EDT

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♪ haidi biz welcome to "daybreak: australia, i am haidi stroud-watts in sydney. rishaad: we are coming to the first open. ♪ haidi: here are the stories were covering in the next hour, stocks in the u.s. fell ahead of the week in earnings. the dollar strengthened the highest in two months. the united kingdom has blown its plans on brexit and skeptical lawmakers are turning to bring a.n to resume
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and, president trump signals a tough line with saudi arabia, saying that he is not satisfied with riyadh's jamal khashoggi explanation. >> taking a closer look at markets in the u.s., the dow falling .5%, the s&p 500 also down .4%. heavily focused on earnings, about 30% of s&p 500 companies reporting this week. energy stocks fell more than 1%, crude is now at a five-week low, and saudi arabia and the u.s. are key players in the oil market. saudi arabia is a backing away from using its oil wealth as diplomatic leverage and crew supplies in the u.s. are continuing to rise. .3%, but itained was a risk off mode, so we saw the dollar strengthening the most and topping the highest levels in two months. we will see how this translates
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into the asian markets, haidi. >> looking like the dollar story is here with a vengeance. it is looking pretty mixed on the market right now, gains across most of the region yesterday led by the rally in shanghai been on the back of the by the support of authorities in china for the equities market. new zealand coming back to trade after the labor day holiday, climbing .5%. we are seeing some pressure on the aussie dollar, 70 -- $.70 or $.80 there. rest of look around the the region, asian features are and we do have the benefit of a slightly weaker yen. nikkei futures looking down, as well as china stocks perhaps a bit more seeing a headwind.
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that us get you the first word news with jessica summers. >> thanks, haidi. u.s. national security adviser moscow,ton, is in meeting with members of the russian security council and he will have talk with president putin later on tuesday. he says he is disappointed -- moscow says they are disappointed that the u.s. would like to dump the 1987 nuclear treaty. italy's populist government has told the eu it is willing to reduce it will breaking budget next year but it is to spend more now to help its poor citizens. finance minister told brussels that he would not let the deficit widened more than 2.4% target for 2019. he admitted he knew that the plans did not comply with eu regulations and has called for constructive talks. heresa may has told
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remaining under eu regulations and inside the customs union for longer would be better than activating the so-called "northern ireland backstop".". you can conservatives say that would be a betrayal. and florida is stepping up criticism of president trump's iteris, saying they have made american steel the most expensive in the world. the global corporations boss said u.s. steel costs are higher than anywhere else and also revealed that ford is continuing to discuss tariffs with the administration. american steel costs about $150 more per metric ton than china. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am jessica summers, this is bloomberg. ♪
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shery: just commit thank you. commodity related shares led boosted, but gains tech. the s&p 500 is on track for its worst month since august of 2015. bloomberg's su keenan is joining us with more of the lows that closely watching the 200 day moving average? su: you pointed out, we have the seen about 15% of earnings report from the s&p, this is a big week. investors are a bit anxious. scorecard.o the as he mentioned, the market was down, we saw three stocks fall for every two that rose. the dollar is that a two-month highs. taking a look at financials, that sector and energy is pretty much leading the losses. banks were a strong spot, netflix as well, green across the screen.
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selling $2 billion in a junk bonds, a practice they have for financing new shows, but if pressured the stocks of it lower. big hit, itstook a worst three-day losing streak since 2015. note, the energy services company rising big as they issued a senior note. crocs, also rising again. tilaray in it the biggest drop in two years. the etf tracking this group has lost 1/10 of its value in the past few days. another cannabis stock will be going on the dow and that could break the downturn. very quickly to the bloomberg gtv, you will note again, the earnings growth has a lot to do with the margins. that is what everybody is looking at.
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the trend during the last nine onrs is that etf's are 2% the white line, but shares are only up only 4%, the blue line. margins is rather focus is, haidi. haidi: also focusing on carter caterpillar, one of these bellwether stocks, they are reporting in tuesday's session low in regular trading today. is it a bit of recovery after hours, there seems to be a bit of indecision as to sentiment to their. real quickly, you can see the stock has been on the decline going into the earnings period, but after hours, as they tended to do in recent sessions, they monthly their equipment sales numbers. it bumped up about one dollar per share, come off just a bit. this is a big report for the two day session, investors however, looking for any negative news.
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they are turning to view this as a half glass half empty scenario -- they are tuning to see this as a glass half empty scenario. whether this affects the bottom line, we will see. haidi: su keenan in a new york for us with more action. president trump is turning up the heat on saudi arabia saying he is not satisfied with the explanation over how jamal died.ggi the president said u.s. investigators are gathering evidence in saudi arabia and turkey and he expects to know what happened soon. let us get over to washington now where bloomberg's derek will bank has more for this story. it seems like this administration is taking a much tougher stance. does, indeed. you can see the white house trying to figure out where it needs to land. stephen mnuchin, the treasury secretary, went to react and met with the crown prince and
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president trump spoke with mohammad bin salman on the phone. the white house has been trying to figure out where to go on this because all the stuff coming out the has been leaking about this case looks really, really, really bad for the saudis. of skepticism here in washington that the current story we are hearing is a real story. ofeed, the same group senators who president trump looks to as some of his staunchest allies including lindsey graham, has come out and said that there is no way the saudi line is accurate? from: yes, we have heard senator graham before, calling mohammad bin salman, "toxic, and that he needs to go." of course, the white house has been reluctant to call out saudi arabia. we know that the treasury secretary will be heading to saudi arabia to meet with key policymakers. what has been the reaction over all, so far in washington? >> absolute outrage, nothing but
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outrage. there was a moment of silence at the national press club early , you have lawmakers from across the political spectrum calling for something strong. the something ranges from kicking up the best kicking out the saudi ambassador to the united dates, all the way to strong sanctions." it is not clear what the response will be ." here is the thing if you are donald trump." you have some time because congress has gone until the midterm elections which happen november 6. that means there is not going to be legislative response until at least a week after that. so the president has some time where he is the only power n and hen washingto will be it would to have some time to figure out his reaction that he would not get if
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congress were here. the white house is trying to figure this out quickly. -- the president really does not have too long and so far, we haven't gotten a very clear sense of where the white house will end up. haidi: president trump also, somewhat surprisingly, told people there might be some tax cuts on tuesday. >> we are giving a middle income tax reduction of about 10%. we are doing it now. , from it income people. this is not for business, this is for middle, on top of the tax decrease you have already given. haidi: some of motivation come a clear, going into the midterms, right? but is it more complicated, will actually be able to be done? >> i will tell the short and sweet, nobody knows what he is talking about. we don't know what the cut is, people on capitol hill don't know what it is.
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we wrote a story this morning that basically said the comments over the weekend by the president kind of dumbfounded a lot of people on tax policy. we are waiting to see what it will look like, what the definition of "middle income" is going to be and what this 10% cut will look like on paper ther. so far there is not much of what the president said. haidi: confounding a lot of people again, derek, thank you so much for joining us there in washington. still ahead, u.s. coal producer, coronado showing pretty tough times for global commodities? shery: plus, why china could be at risk with its ongoing trade battle with the u.s.. the outlook for the global economy next. ! >>
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shery: welcome back. indonesian-- the rupiah is stable and steps are being taken to rein in the budget. best the budget deficit. consensus is no rate hikes today in indonesia, but why do some analysts disagree? >> first, let us put on the table white people are saying they will not hike rates again and as we do so, that is jump into our #gtv charts. bank indonesia has hiked rates five times since may, you have 5 and atne, 2, 3, 4, this level, they have helped to stabilize the currency. so people are saying that they do not need to do anymore and that is weather service says they will keep the rate at 5.75% -- that is why the bloomberg survey says they will keep the 5.75%. the bank of indonesia governor
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says he is committed to preemptive policy to counter the rupee has stress. meaning that he will. hike the rate. but analysts are saying that it is not clear that ringing in the current account deficit is enough to keep the currency steady. it may reflect the influx of imstors to bali for the meeting. i certainly changed my dollars into rupiah, so i know what they're talking about. also, trade war angst is still in place, the fed is signaling the path to more rate hikes and the indonesian current account deficit is getting narrow because of steps the government has taken, that is not established yet and that is the key for making the rate hike. haidi: kathleen, what else are we watching in terms of the central bank this week? italy and its budget battles, refusing to back down
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from eu pressure to stay with their budget plan. they say they have to help their poor citizens and it is going to increase spending and cut expenses for people, all this -- in fact, they have been telling finance ministers to say that it is difficult, but necessary to this. such a big deal that the italian prime minister weighed in, saying that they should be hopeful, we will meet our deficit target. here is what he said earlier. >> the 2.4% target is our upper limit. we can still reassess. doing the budget implementation, it containment, so we don't necessarily need to reach the 2.4%. for sure, we will not exceed this? kathleen: and all of this is going on as a european central bank gets ready for its meeting on tuesday. thing special expected from
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that meeting, but the standoff between the populist government in italy and the powers that be in brussels are is creating uncertainty around the economy and markets and it will be interesting to see if that comes out, certainly, in the presser after the meeting on monday. haidi: kathleen hays a new york for us. eu, there is ahe lot to occupy the month for investors. let us look at the biggest risk of the moment, northern trust executive vice president crawl tennenbaum, he spent four years at an advisor at the federal reserve, where he led the risk section. thank you for joining us. interesting conversation with someone who is on the more cautious side of this story and he said yesterday that the idea of the u.s. facing off a recession risk anytime soon -- listen to what he said. >> look, our economy is still
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doing very well, in a few months it will become the longest recovery in history and i don't believe there are signs of recession anytime soon. into theis is heading longest recovery we have seen. but he wishes are pretty much close to the richest they have seen. of thethink the longer economy runs hot, the steeper the follow be? >> i have to say, it is incredible to me that such a great situation is kindling so much anxiety. we need to remember that during the course of this nearly 10-year expansion, we faced a lot of challenges, including from europe and asia, and we traded right through them. the economy is resilient. there is no reason to deal we could best there is no reason to think we cannot deal with it here. haidi: let us deal with policy mistakes first.
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you are at the fed for four years, dealing with risk. we don't know what will happen, we have never had to unwind from this kind of extraordinary monetary policy decision before. is it satisfactory to be told that it will be a smooth landing? carl: we do have a blueprint or fly pattern -- flight plan for the smooth landing, but the fed has moved at a measured pace. i think the communication by a large has been good, but as he met expect, as they get closer to the end point, things get murky because you are not exactly sure what the neutral level is that neither restricts or accommodates. we are also watchful for signs of any financial imbalances? shery: that the fed would like to avoid what about communication from the white house? president trump is talking about another batch of tax-cut for middle income people and the has been noise surrounding that. how challenging is it to discern
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noise from actual policy? carl: it is a full-time job, i can tell you. as somebody from twitter, separating the signal from the noise really absorbs a lot of the day. taxut it into context, that cats put into place boosted the rate of economic growth to this summer months, but they will wear off in additionally, we just got the full year results of the federal good. and they were not 17% higher deficits, and i suspect many in congress, regardless of the midterm elections, will be cautious about another tax cut that will increase the deficit further? shery: yes, we just heard that it reached almost 800 billion dollars, a six year high in president trump's first full year in office. we will see risks emanating from this when it comes to budget deficit and debt within the u.s. economy? carl: i think their risk is there. so far, investors don't seem to
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be that alarmed, even our long-term interest rates have gone up, somewhat. the demand for treasuries internationally is still very strong. . perhaps that is only by comparison with other fixed around the nevertheless, long-term projections for the united states and other countries are affected by the them a graphics developed markets are facing. pensions and medical care will put this stress on the markets in the next two years unless markets are put in their rightful place. haidi: the popular narrative spews isident trump that this is hurting china more than it is hurting the u.s.. we are looking at this indication suggesting that exports are down, whether it is due to the trade war or whether it is structural factors of what the economy is doing, it is due to slow. 10 has been the factory of the world for a long time, but it is
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also the end consumer of the world in a lot of ways. will this be bad for global or regional growth? carl: excellent question. i know there are many focused on china and in some measure on whether they played fairly in the trade arena or whether their economic gains have come at the expense of other countries. i think that issuance the chinese have achieved -- i think the issue is that the chinese have achieved a lot of success and their consumers purchase more products from overseas. nevertheless, it is clear from conversations i have heard with people that businesspeople would like to level the playing field with china, which puts their economic expansion at a risk. haidi: do you think the fed and policymakers in the u.s. will have to react to the impact of the tariff war? how will the transmission will see a boost in short-term inflation, maybe stagflation around the track as growth slows? carl: it is hard to tell, it has
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been featured in credit number of statements from the fed -- featured in quite a number of statements from the fed. is small, but if the process continues to its full extent, they will have to take into account in their policy. if it is inflationary at the same time as global growth is slowing, that is not a conversation that central banks well.ith very haidi: we appreciate your insights and coming on ensuring them with us. remember, bloomberg users can interact with the charts showing g tv , you can browse recent charts featured on tv, save them for future reference. this is bloomberg. ♪
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♪ haidi: i am haidi stroud-watts in sydney? shery: and i am shery and in new york, you are watching
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"daybreak: australia." a goldman sachs is offering new products to specific clients. on an internal memo seen by bloomberg says it is putting the markets retail ranking arm under its investment marketing division. it has ambitions in mortgages, credit cards and retirement plans. haidi: another big figure has left uber. the company says its longtime dealmaker has resigned, leaving another vacancy at the ride hailer, ahead of next year's anticipated ipo. he was a goldman sachs executive and the wall street journal said last month, he was accused of misconduct and disciplined. he responded that he had made an air in judgment and was sorry? shery: netflix is going back to the junk bond market in order to sustain burgeoning subscriber
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growth. let $2 billion offering will come in dollars and euros and arrives a week after the company reported the biggest jump in subscribers, more than analysts expected. the bond will push netflix check or debt above $10 billion for the first time that the bond will push netflix' as that above $10 billion for the first time .
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>> it is 9:30 a.m. in sydney. beautiful sunny day here in sydney. about 25 degrees today, but looking like a lazy start. 0.1% lower for a downside. i'm haidi stroud-watts in sydney. shery: gorgeous view there. asia,s what i miss about the beautiful harbors and the beautiful weather. i'm shery ahn in new york. you are watching "daybreak: australia." let's get the first word news. jessica: president trump is turning up the heat on saudi arabia. he's not satisfied with the
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explanation of what happened to jamal kh u.s. investigators will break him soon on the killing. the president didn't elaborate on which agency is looking for information in saudi arabia and turkey. president trump's son-in-law is downplaying saudi arabia's role in the killing, saying the u.s. is still gathering information. sees kushner said he deception every day, both in the middle east and in washington. kushner said he told the crown prince to be transparent. just days before the brazilian presidential runoff, a right-winger is dominating social media. a new survey shows his name is being mentioned three times more frequently than his leftist rival. mentions surged in the past week, yet it is not clear how many were positive or negative.
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president xi jinping may speak later tuesday as china inaugurates the longest sea bridge in the world. the 55 kilometer span links do high with macau and hong kong. it may carry say 30,000 vehicles daily. the project is part of a plan to turn the greater bay area into a hub to rival silicon valley. global news, 24 hours a day, on-air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. >> thank you. let's look at asian markets. the tuesday session underway. not a great lead from wall street. pretty lackluster session. sydney, as we create closer to the open, looking at a pretty flat open. we had oil prices falling, a
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shaky picture for metals and commodities as well. the aussie dollar trading at 70.77. we have new zealand on the downside. taking a look around the rest of the region, pretty good day when it comes to japanese equities. we had some risk appetite returning to asia. chinese equities still getting a boost from confidence injections from the support we had from chinese authorities. futures looking pretty dull today as well as a strengthening in the yen still weighing on sentiment. we could see a bit of a correction going into the china open with the ftse china futures looking firmly in the red. bloomberg's asia editor joins us. still lots of risk for investors out there. morgan stanley and goldman sachs
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say we may not see a repeat of that enthusiasm. >> absolutely right. tech stocks probably the only bright spot ahead of this mega earnings. there are risks out there. asian futures down across the board. there is skepticism that the rally in chinese stocks will continue. you've got trade tensions, you've got the italian budget, you've got the death of the saudi journalist, and one of the other things that is coming up on the radar is the midterm elections. when you put that together with a higher bond yield, both morgan stanley and goldman sachs are saying that you may not see a bounce in the fourth quarter that we have seen in the last few years. we've got a chart in the library that shows the s&p 500 has risen
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in the fourth quarter in eight of the last nine years. there's a real chance that may not happen given increased volatility as the midterm elections come up in a couple weeks. the goldman sachs also says a rebound is less likely. >> there are some people that think the one in china is dead as well. >> bank of america merrill lynch says the biggest rally in chinese stocks that we saw 2016 isy since early sentiment driven and unlikely to be sustained. they point out the high leverage in the stock market, uncertain outlook. there is a deteriorating economic outlook from the trade tensions. we've got a chart that shows despite yesterday's bounce in
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the shanghai composite, it remains one of the worst performing markets in asia. one thing to note is this time around it is smaller private companies weighing on the market. they are at higher risk because of collateral requirements and the selloff has been compounded because of the risks around stock pledges. haidi: thank you so much, andrea. you can check out gtd live with some of the charts we've been bringing up. we've been talking about the outlook when it comes to commodities. oil is looking pretty mixed. shery: especially when it comes to oil and palladium. we are seeking hedge funds i'll into palladium, but they seem to be steering clear of oil. su keenan has the background for all this. let's get started with oil. su: it looks like investors are
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steering clear. let's take a look at the bigger picture chart. intermediate was at a four-year high at the beginning of the month. you can see how it has come there's a 1-2 punch. the saudi chief taking the embargo style tactics. there was concern that oil would be used as a weapon. we are seeing inventories expand at the fastest pace since early 2018. you can just look at those last two days. real question is where we go from here. shery: and also where we go when it comes to palladium. announcingnt trump he's going to pull out of a nuclear deal with russia, which
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happens to be the biggest producer of palladium. take a look at the metals. palladium had been up several percent. this is the after-hours trade. copper had also been higher. look at the year-to-date chart of palladium. it is near a record. you have had hedge funds pile in. citigroup saying they see the tightest market in decades. what you have is a very tight supply situation. a lot of consumers were scrambling to get supply. trump adding tensions with the number one producer. shery: su, thank you for that. there's understand another huge commodity story unfolding in australia. haidi: it is an american coal miner. trading int to begin sydney later on today. it raised $550 million in its
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share offer. a global selloff in commodities shares. james thorne is here with more. this comes as oil prices have been creeping up sharply. so the prospects for the company? >> good morning, haidi. they could have chosen a better day to launch. our local market is set to open lower. that isn't a great environment to start off with. if you look at players in australia who are comparable with coronado, they had strong runs up on the back of that rise in coal prices, but they've come off in the last few days. environment is not ideal for coronado to launch into this point. they priced the deal fairly competitively. priced at the bottom of the
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marketing range. ownerswhat are the saying about this ipo? are they disappointed? do they like what they saw? >> the private equity owner is called energy and minerals group. they scaled back the sale. they sold a 20% stake. they initially planned about 30%. they weren't entirely happy with the price. when they targeted australia, strongre looking at the investor base in resources down here and a good understanding of the coal market. for one reason or another, that is not what has transpired. the australian market has got a natural distrust of private equity selldowns. they have been burned in the past. that probably was a factor. a lot of the big pension funds have mandates which exclude:
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investments. that canceled them out as a potential resource base. in the end, coronado ended up getting more global interest than local interest. haidi: what does that mean for appetite? we know that government policy will have ahat coal role in the energy mix. >> i think there is a future. there's strong demand in japan, china, and increasingly india also. that demand is going to be there for years to come. the argument is that australia is producing high quality coal and that is the sort of coal these countries want to import, because it brings down their emissions. the demand is there. coronado may prove to be a good price. haidi: we will be watching out
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for that later on today. james, thank you for that. james thornhill previewing the coronado ipo. more on the outlook for commodities ahead. lots of geopolitical tensions with saudi arabia and iran and what it means for volatility in the oils patch. china's crucial winter season gets underway. whether this will continue to drive the bullish outlook of australian iron ore. plus, we will be speaking about why investors think gold has seen a bottom. this is bloomberg. ♪
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shery: i'm shery ahn in new york. haidi: and i'm haidi stroud-watts in sydney. settling below $70 a
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barrel for a fourth straight session as saudi arabia backs away from using its oil wealth while u.s. inventories expand at the fastest in more than 18 months. gavin, great to have you here with us. the geopolitical situation between washington and riyadh at the moment, do you think it is going to meaningfully impact oil? >> it is a great unknown. markets typically do not like uncertainty. haidi: we are getting used to unknowns when it comes to policy. >> we sure are, particularly in 2018. trade and tariffs and that sort of thing. the other great unknown is iran as well. talking about two of the biggest producers in the world. my view on oil prices is that we are likely to see stability
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between 70 to $75 a barrel, perhaps as high as $80. the big issue is that when the oil price rises, we say it provides a financial incentive for u.s. shale production. states typically is quite a significant swing producer. that tends to put an upside cap on prices. if you are a betting man, there's a strong evidence for price stability around that $70 mark. demand is still very strong. we've got supply-side concerns. and we just don't know what is going to happen with trump on a day-to-day basis. u.s. inventories have been climbing. almost at that five-year average now. what are the implications that there's a gap between wti and
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brent? >> we do see that cap opening up on occasion. the united states is in a sound position because of the domestic shale industry. if prices ease off, we can see that production level drop off significantly. typically u.s. shale producers have a higher net cost production than the opec producers. in the past it has been as high as $80 a barrel plus. they are generating a reasonable margin now. if oil prices drop, margins can be cramped. some of the production can be sidelined once again. haidi: whether it is brent or wti, we are seeing oil prices on an uptrend. this chart on the bloomberg showing the s&p 500 energy sector is still underperforming. why are investors not climbing
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on energy names? >> it is a really good question. we are seeing the same thing in the australian market. two of our biggest energy companies had high exposure to both oil and liquefied natural gas. they've come out with very positive -- excuse me -- announcements over recent weeks. saw those stocks down. we had a strong share price performance during 2018. i think what we're looking at in the oil industry as far as the domestic oil industry is concerned is that markets are demanding excellence in terms of reporting. and simply meeting market guidance isn't enough. companies that meet market guidance tend to be sold off. i think given the mood in the resource sector at the moment, companies need to outperform
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when it comes to production reports and financial reports. haidi: how about the mining sector? we have seen the big miners performing relatively well. are there any mining names you like? >> i think all the major miners like bhp, rio tinto, glencore, have done well. bhp is the standout. it is not just a hard rock mining company. it also has a significant oil and gas component. and of course that can be a positive and a negative. at the present time with oil prices where they are, and if you look at the key minerals the company is exposed to, it is generating very strong profits indeed? last week it came out with a strong quarterly production report. iron ore sales to china were up 8%.
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domestic iron or in china is still very strong. a very compelling case for bhp. haidi: that high grade is going to continue? >> i would think so. given the chinese authorities' determination to reduce pollution and that sort of thing, it does present a compelling case for higher grade premium quality iron ore. the net effect is that it does reduce pollutants. haidi: coronado lists today. is this the right time for a coal producer to go public? >> i think so. market sentiment has been very strong in the coal sector, whether we are talking about for steell or coal mills. a lot of that is to do with supply-side discipline. if we look at the domestic
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coalet, we've seen two producers that performed well. e is up andwhop whitehaven is up. haidi: gavin, thank you for that. you can get a roundup of the stories you need to know in today's edition of daybreak. users can go on their terminal. you can tweak settings so you just get news on the industries you care about. health care here in australia, we appear to be getting a share offer their for $2.36 aussie dollars a share. they assessed the proposal. $2.26 in a cash share from the gh and australian super.
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we're getting more on that story as the details become available. in the meantime, this is bloomberg. ♪
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haidi: i'm haidi stroud-watts in sydney. shery: and i'm shery ahn in new york. let's get a check of the latest business flash headlines. arm holdings is the latest business to pull out of saudi arabia is investing confidence in riyadh. armed technology is at the heart of most mobilephone chips and the company is a unit of softbank," her of the saudi government. bloomberg is no longer a media partner. the man who built glencore into a force is said to have told investors that he will quit in three to five years. he discussed a successor in
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recent meetings and has begun training people as front runners for the job. he wants glencore's next leader to come from a younger generation. won u.s. have regulatory approval for a merger to create the world's largest supplier of industrial gases. the federal trade commission will ok the deal on conditions that the companies resolve concerns that their combination will hurt competition. shares of both jumped in frankfurt and new york. haidi: lufthansa is said to be considering whether to buy boeing planes or stick with airbus. we are told the decision is between the dream liner and the a350 and an order may come in the next few months. the deal may hinge on whether the plane makers will help lufthansa offload its older models. we are getting some
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headlines on the bloomberg. president trump, "usa today" reporting that president trump is calling the death of journalist jamal khashoggi a plot gone awry. president trump telling "usa today" that many possible penalties are there for the saudi's, that the death of jamal khashoggi was a plot gone awry, according to "usa today," saying that president trump has told the media company that there are many possible penalties for the saudi's. president trump has been reluctant to call out saudi arabia on the death of jamal khashoggi at the saudi consulate in istanbul. now president trump telling "usa today" that there would be many possible penalties. we know that one of those things could be the cancellation of an arms deal with saudi arabia, but president trump has been reluctant to cancel that deal,
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saying it would hurt the united states more. haidi: we are seeing greater pressure coming onto the president and his administration to take a tougher stance given the outrage that has been the broad reaction on capitol hill and globally. china's greater bay area is getting a boost when it comes to infrastructure. the world's longest sea bridge link is said to connect hong kong and macau to do high on the mainland and it is intended to further solidify the vision for a high-tech megalopolis rivaling silicon valley, but also to bring hong kong and macau closer. big things happening as soon as we left hong kong. the 65 kilometer roadway is expected to carry 29,000 cars and trucks per day. build 55nough to
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iphone towers. that would have been a great achievement if we were still there and it was easier to travel. haidi: lots more to come. this is bloomberg. ♪
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haidi: a very good morning. australian markets have just opened for trade. shery: i'm shery ahn. welcome to "daybreak: asia." haidi: our top stories this tuesday, asian equities suffered declines after losses on wall street overnight. the dollar rising. italy refused to back down on its spending plans. commissioners may reject the budget. president trump


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